Technical Analysis

Nifty 50 June Futures (10,108)

Yoganand D, BL Research Bureau | Updated on June 03, 2020

The positive global cues, had helped the Sensex and the Nifty to commence the session with a gap-up open and continues to trade in the positive territory. The Dow Jones and S&P 500 index has jumped 1 per cent and 0.8 per cent respectively in the past session. Following the US markets, the Nikkei 225 had climbed 1.3 per cent to 22,613 and Hang Seng index advanced 1.2 per cent to 24,271 levels in today's session. The Sensex and the Nifty have advanced 1.2 per cent and 1.3 per cent respectively. The market breadth of the Nifty index is biased towards advances. India VIX index is marginally down by 0.8 per cent to 29.8 levels. Both the Nifty mid and small-cap indices have gained 1 per cent and 2 per cent respectively. Small-cap index has once again outperformed the benchmark indices. All the sectoral indices are trading in the positive territory except Nifty IT index which is down by 0.45 per cent. Top sectoral gainers are Nifty PSU Bank and Nifty Bank that have jumped 4.5 per cent and 3 per cent respectively.

The Nifty June month futures contract commenced the session with a gap-up open at 10,080. After an initial decline to 10,036 levels the contract resumed the up-move breaching the key resistance at 10,100; it marked an intra-day high at 10,134 levels. The near-term outlook stays positive as long as the contract trades above 10,050 levels. Traders can buy the contract in dips with a stop-loss at 10,040 levels. A decisive break above 10,135 can take the contract northwards to 10,150 and then to 10,175. On the downside, a decisive fall below 10,050 can bring some selling pressure and drag the contract down to 10,030 and 10,000. An emphatic plunge below 10,000 can pull it lower to 9,960 and 9,930 levels.

Strategy: Buy in declines with a fixed stop-loss at 10,040 levels

Supports: 10,050 and 10,030

Resistances: 10,135 and 10,150

Published on June 03, 2020

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